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If the new Natural Gas Act of 2011 passes, the Alternative Fuel Tax Credit will be extended to December 31, 2016—that give us five more years of low cost compressed natural gas (CNG). President Obama urged Congress this week to pass the act as part of his new federal energy blueprint. According to the President, “Last year, more than 150 Members of Congress from both sides of the aisle proposed legislation providing incentives to use clean-burning natural gas in our vehicles instead of oil. So I ask them to keep at it.” The President’s statement increased stock trust in many public CNG companies around the nation.
If everything goes according to plan, the Natural Gas Act could be presented to the President as early as May. Some of the key elements of the bill include:
• Extension of the Alternative Fuel Tax Credit to December 31, 2016.
• Extension of the Alternative Fuel Motor Vehicle Tax Credit to December 31,2016.
• Makes all new dedicated natural gas vehicles and certain bi-fuel and dual fuel alternative natural gas vehicles eligible for a credit equal to 80% of the incremental cost up to a credit cap
• Tax credit max value would be capped and would range from $7,500 to $64,000 depending on the weight of the vehicle.
• Natural Gas Vehicle Production Incentives.
• Extension and increase of the Alternative Fuel Vehicle Refueling Property Credit to December 31, 2011.
• Grants for research, development, and demonstration.
The new act will energize the CNG industry. Just by reading though the document, which can be found here http://bit.ly/eRexon, it is evident that it is a good time to invest in the future of CNG.
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